PANAMA CANAL.

Taranaki Daily News, Volume LV, Issue 203, 16 January 1913, Page 5

PANAMA CANAL.

STATEMENT BY MR. KNOX. liy Cable —Press Association —Cepyright. Washington, January 14. The reply of Mr. Knox. Secretary of Slate, regarding the Panama Canal dispute. follows Mr. Taft's argument that the United States has full rights of contrnl over coastwise shipping;. He also contends that there is nothing in the llay-Patincefote Treaty amounting' to the surrender by tli" United States of the right to regulate its own shipping through the Canal. He interprets Article 3 as binding all nations except the United States, which, however, is hound not to discriminate against any one of them, provided they observe the rules of the management of the Canal. Mr. Knox expresses the willingness of the Americans to do everything to adjust the dispute, but does not mention the sending of a further British Note. FURTHER NEGOTIATIONS. Received 15, 10.50 p.m. London, January l.j. The Daily Telegraph's Washington correspondent reports that the Foreign Office's reply to Sir E. Grey's Panama protest is ready for the Cabinet's consideration. It is understood that while adhering to the free passage of American vessels it suggests a continuation of ne- '' gotiations. Mr. Elihu Root has introduced a Bill to eliminate the exemption provisions fiom the Canal Act.